An anonymous trustee reports

ENERGY INCOME FUND DECLARES INTEREST IN DERIVATIVES TRADING AS PART OF NEW INVESTMENT STRATEGY

Artemis Investment Management Ltd., the trustee and manager of the Energy Income Fund, has noted the fund will engage in derivative trading as part of its new investment strategy, as outlined in the information circular dated Feb. 12, 2024, which is intended to commence on or after Sept. 15, 2024.

As part of its derivatives trading strategy, the fund will engage in the purchase and sale of call and put options. Call options grant the holder the right to buy a stock at a predetermined price, while put options provide the right to sell a stock at a specified price, both within a designated time frame. The fund plans to utilize these derivatives for both hedging and non-hedging purposes. Hedging will be employed to mitigate exposure to fluctuations in securities prices, while non-hedging activities will serve as substitute investments for stocks, aiming to generate additional income.

With respect to the sale of any derivatives, the fund will restrict its activities to selling covered call options on stocks for which it owns the underlying assets, thereby limiting downside risks. In the case of selling put options, the fund will reserve a corresponding cash amount to potentially purchase the stock, further minimizing financial risks. The fund will only use derivatives in accordance with the requirements of the securities regulations.

As per the risk management procedures of Artemis, the fund's investment in any derivative position must not exceed 10 per cent of the net asset value of the fund, and total derivative exposure must not exceed 25 per cent of the net asset value of the fund.

We seek Safe Harbor.